Dear Frien d,

Several recent stories in the press have addressed our state's economic growth, and I wanted to take a minute of your time to update you on how we are working to promote that growth.

We've always worked under the belief that if a state improves its business climate, then small businesses - the backbone of our economy - will flourish. So far, by cutting taxes, shrinking government, and passing smarter, more specific regulations, we have been able to give our state a much better business climate than it had when I first took office.

We're already starting to see returns. In 2002, our state's "business climate" grade (based on an analysis by The Cato Institute) was only a "D." In 2004, because of the small business reforms we enacted in 2003 and 2004, our state improved to a "B." In 2005, our business climate improved even more when I signed laws cutting small business taxes by 28.5% and enacting the state's first-ever tort reforms.

We are also promoting economic growth by recruiting out-of-state industries - and not just any industry, but those that offer high-paying, high-skilled jobs. We have gone after those high-quality jobs with "smarter" incentive packages that include cost-benefit analyses comparing the cost per-recruited job with the job's net present value.

Once again, our efforts are paying dividends. This past year we brought 105 new projects to the state. In fact, 35 counties saw at least $3 million in announced capital investments, totaling $2.76 billion and almost 13,500 jobs. More importantly, the average wage for those new jobs was 31 percent higher than South Carolina's current per capita income.

We will continue to push for these high-paying jobs - from promoting hydrogen fuel cell research at the Savannah River Site and the $157 million automotive research campus in Greenville to, most recently, convincing Vought Aircraft to select North Charleston as the site for its new $560 million facility for constructing the new Boeing 787 fuselages.

The competition among the states for these new high-paying jobs is fierce, but so is our determination to succeed. In that regard, I invite you to read the op-ed printed below that ran in last Tuesday's edition of The State. This op-ed can also be accessed at:

http://www.thestate.com/mld/state/news/opinion/12393109.htm

If you have the chance, please forward this op-ed to a friend. And as always, I appreciate your support.

Here's hoping you'll be able to stay cool during this very hot summer.

Sincerely,

Mark

Governor went extra mile to land aviation deal

Published in The State

Tuesday, August 16, 2005

By TOM RISLEY

I've heard many elected officials say that economic development is their primary focus. But as leader of Vought Aircraft Industries, one of South Carolina's newest corporate citizens, I've found out that Gov. Mark Sanford really means it. His actions speak louder than words.

We looked at many sites before deciding to locate our $560 million manufacturing complex for the 787 airplane in South Carolina. This facility is helping to establish the state as a key player in the creation of the next generation of commercial aircraft. Gov. Sanford's keen focus on economic development and active recruiting efforts were key factors in our decision to choose this state.

Gov. Sanford and the team of state and local officials were hands-on in bringing the Vought-Alenia team to North Charleston. In fact, Gov. Sanford and Commerce Secretary Bob Faith told us from the very beginning that they simply would not take "no" for an answer. They were engaged throughout the negotiation process and demonstrated, by their actions, that South Carolina is a pro-business state.

I've read recent news reports criticizing Gov. Sanford's economic agenda that he hasn't done enough to advance job growth in the state. From my experience, Gov. Sanford is the state's best salesman.

Admittedly, there are many factors affecting South Carolinas high unemployment rate and slow job growth. These problems didn't arise overnight, nor will their solutions. However, I am convinced that Gov. Sanford is committed to making South Carolina's business climate highly competitive so that companies like ours can succeed and grow here.

Gov. Sanford has a track record of targeting companies that promise a strong return for the state's taxpayers. As a result, he makes wise investments with the state's incentive dollars. By the same token, he also has proven his commitment to shore up South Carolinas finances so that the state has more money to take care of future economic development.

I can tell you this: Gov. Sanford and his team spent as much time vetting our company as we did the state. In other words, just as our executive team was tasked with making sure South Carolina was the best fit for Vought, Gov. Sanford and his team took the time to make sure Vought was the best fit for South Carolina. What is even more reassuring is the follow-through. Gov. Sanford and the state and local economic development folks have continued to meet with us, to encourage us that as we grow, we should grow in South Carolina.

Vought plans to hire about 350 workers and, through our joint venture company Global Aeronautica, another 250 workers earning competitive wages and benefits. But it probably wouldn't have happened if it weren't for a governor who was willing to catch a trans-Atlantic flight and meet with stakeholders eyeball-to-eyeball. Likewise, it probably wouldn't have happened if local economic development folks from the Charleston Regional Development Alliance, city of North Charleston, Lowcountry officials and technical college system leaders weren't willing to go the extra mile on our behalf.

If South Carolina's governor was not personally willing to fly to Dallas to seal the deal, we might be elsewhere today. To me, those kinds of actions speak louder than words and show the level of commitment he is willing to make on your behalf.

Vought looks forward to many years of success in South Carolina. As we do business in the state, and count South Carolinians among our workforce, we'll look forward to working with a governor who is dedicated to actively recruiting the right industry and to building the state's competitive advantages.

Mr. Risley is chairman, president and CEO of Vought Aircraft Industries, one of the world's largest independent suppliers of aerostructures.